Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing Total costs overhead costs KA-15 a. Predetermined overhead rate b. Predetermined overhead rate 630 360 750 $ 73,000 15,000 KA-24 420 540 1,750 $ 122,500 35,000 Total Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. per direct labor-hour per machine-hour 1,050 900 2,500 $ 195,500 50,000 191,700 $ 437,200
Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing Total costs overhead costs KA-15 a. Predetermined overhead rate b. Predetermined overhead rate 630 360 750 $ 73,000 15,000 KA-24 420 540 1,750 $ 122,500 35,000 Total Required: a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs. Note: Round your answer to 2 decimal places. b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machine-hours to allocate overhead costs. per direct labor-hour per machine-hour 1,050 900 2,500 $ 195,500 50,000 191,700 $ 437,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kilbourne Appliances produces two models of beverage coolers for homes and offices,
the KA-15 and the KA-24. Data on operations and costs for March follow.
Units produced
Machine-hours
Direct labor-hours
Direct materials costs
Direct labor costs
Manufacturing
Total costs
overhead costs
KA-15
a. Predetermined overhead rate
b. Predetermined overhead rate
630
360
750
$ 73,000
15,000
KA-24
420
540
1,750
$ 122,500
35,000
Total
Required:
a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses
direct labor-hours to allocate overhead costs.
Note: Round your answer to 2 decimal places.
b. Compute the predetermined overhead rate assuming that Kilbourne Appliances
uses machine-hours to allocate overhead costs.
per direct labor-hour
per machine-hour
1,050
900
2,500
$ 195,500
50,000
191,700
$ 437,200
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